Published: June 9, 2026
Business globalization, the expansion of international trade, and the rise of remote work have increased the international mobility of workers and given rise to new ways of providing services.
When a foreign company wants to hire talent in Spain, it must distinguish between several legal frameworks: intra-company transfer, local hiring, and international remote work. Although these may be confused in practice, each is subject to its own set of rules regarding labor, immigration, tax, and Social Security matters.
Choosing the wrong legal status is not merely a procedural error: it can result in the denial of authorization, expose the company to unforeseen Social Security liabilities, or—in the case of remote work—pose a tax risk to the foreign employer itself. Therefore, it is essential to properly define the worker’s immigration strategy based on the company’s needs and the manner in which services will be provided in Spain.
I. INTRA-CORPORATE TRANSFER (ICT)
The Intra-Company Transfer allows foreign nationals who have an employment, professional, or training relationship with a company or corporate group based outside Spain to travel to Spain to provide services at an entity within the same group. The authorization is valid throughout Spain and essentially requires the following:
- Proof of actual business activity (of the company and, if applicable, the group).
- A higher education degree (MECES Level 1) or at least 3 years of equivalent professional experience.
- A prior, ongoing employment or professional relationship of at least 3 months with a company within the group.
- Company documentation verifying the transfer.
This option is designed for those who are already working for a foreign company and need to continue that employment relationship from Spain without terminating their original employment contract.
Two Types of Authorization
The law distinguishes between two options, and the choice between them determines the worker’s subsequent mobility within the European Union and the company’s scope of action.
- ICT-EU Authorization. Applies to executives, specialists, and trainees seconded from a company outside the EU to an entity within the same group in Spain.
A key advantage of this modality is intra-community mobility : the holder of a valid authorization issued in Spain can enter, reside and work in other Member States, after prior notification and unless there is a reasoned opposition in the legally provided cases.
Similarly, companies from other Member States may transfer ICT-EU permit holders to Spain, provided they notify the UGE-CE in advance; authorization is subject to there being no grounds for objection (failure to meet requirements, fraudulent documentation, or exceeding the maximum duration of the transfer). However, it is not possible to convert an ordinary residence permit already granted in Spain into an ICT-EU permit. This type of permit requires that the third-country national be outside Spain and the European Union at the time of filing the application. Therefore, if the person is already residing in Spain when the procedure begins, they do not meet this requirement.
- National Authorization for Intra-Company Transfers. This provision applies when the transfer does not fall under the typical scenario of the ICT-EU (temporary transfer to work as a manager, specialist, or trainee from a company established outside the EU to an entity within the same group in Spain) or when, even if it initially did, the maximum permitted duration of stay under the ICT-EU has been exhausted.
In both cases, an intra-company transfer is, by definition, temporary. The maximum duration shall not exceed three years for managers and specialists, and one year for trainees; at the end of that period, the worker must leave the territory of the Member States, unless he or she obtains a residence permit for another reason.
Coordination with the Travel Policy and Social Security
With regard to social protection, Directive 2014/66/EU itself requires that adequate social security coverage be guaranteed for posted workers, referring to the branches listed in Regulation (EC) No. 883/2004 on the coordination of social security systems. In practice, this reference requires distinguishing between two scenarios.
- Within the European Union, Regulation 883/2004 allows workers to remain enrolled in their home country’s social security system by means of a posting certificate (Form A1), thereby avoiding double contributions.
- With respect to third countries, coverage will depend on whether there is a bilateral Social Security agreement with Spain that expressly provides for the posting of workers and the corresponding certification of coverage; in the absence of an applicable agreement—or if it does not cover intra-company transfers—the host company must enroll the worker in the general Spanish social security system, with the resulting impact on the cost of the operation, which should be anticipated during the planning phase.
II. LOCAL HIRING
Local hiring is the most direct route when the employee is going to provide services on a permanent basis in Spain and the assignment is not structured as an intra-company transfer. Under this arrangement, the employment relationship is established directly with the employer in Spain, without the need for a prior employment relationship with a group company abroad. This approach requires the existence (or formation) of a Spanish entity capable of acting as an employer. Its main elements are:
- Employment contract in accordance with Spanish labor law, specifying the essential terms and conditions (position/category, work schedule, compensation, vacation time, etc.).
- Applicable collective bargaining agreement and job classification, if applicable.
- Registration and contribution to the Spanish Social Security system in accordance with the applicable terms.
Within this general framework, the visas that best fit local hiring are the work permit for salaried employees (Art. 36 of Organic Law 4/2000), subject to the national employment situation unless an applicable exception applies, and the Highly Qualified Professional (HQP) authorization (Art. 71 et seq. of Law 14/2013), reserved for individuals with a higher education degree or equivalent qualification who are hired by companies of a certain size or engaged in specific activities.
This route allows for the full integration of the worker into the Spanish labor market, without the time limit associated with an intra-company transfer or the need to prove a prior relationship with the group. It is appropriate when there is no affiliated foreign company from which to carry out the transfer, or when the company needs a stable and permanent presence in Spain.
III. INTERNATIONAL TELEWORKERS
This type of authorization is intended for nationals of third countries who reside in Spain while carrying out, through the exclusive use of computer, telematic, and telecommunications means, a work or professional activity for a company or group of companies based outside Spain.
The main requirements for this type of authorization are:
- The applicant’s qualifications, as evidenced by an undergraduate or graduate degree from a university, vocational training, or a prestigious business school, or at least three years of professional experience in the field of the position.
- The existence of actual and ongoing business activity for at least one year on the part of the company with which the applicant has a relationship.
- That such a relationship—whether employment-related or professional—be capable of being carried out remotely, a fact that must be substantiated by documentation.
- Proof that the employee has been employed by the foreign company for at least three months prior to the application, along with documentation setting forth the terms and conditions of remote work.
Dual status: employed and self-employed
- As an employee (employment relationship): The teleworker performs work under an employment contract or equivalent employment relationship, providing services on behalf of and under the direction of a company based outside Spain. Under this arrangement, authorization for remote work is granted exclusively to employers not located in Spain.
- Self-employed (professional activity): The teleworker carries out a professional activity on a self-employed basis for one or more companies not located in Spain. Under this arrangement, the teleworker is also permitted to provide services to a company located in Spain, provided that this portion of the activity does not exceed 20% of the total of their professional activity.
Term and Renewal
There are two ways to qualify for this status. If the applicant is outside Spain, they must obtain a remote work visa (Art. 74 quater of Law 14/2013), which is valid for up to one year—or for the duration of the employment period, if shorter—and constitutes sufficient authorization to reside and work remotely during its validity without the need to first apply for a residence permit. If the applicant is already legally present in Spain or holds such a visa and wishes to continue, they may directly apply for a residence permit for remote work (Art. 74 quinquies), valid for a maximum of three years, renewable for successive two-year periods as long as the conditions that gave rise to the right are maintained, which allows for permanent residence to be obtained after five years.
Social Security
Unlike the Intra-Company Transfer, the status of international teleworker generally does not entail a specific Social Security regime. According to the Joint Instruction issued by the General Directorate for Spaniards Abroad and Consular Affairs and the General Directorate of Migration (2023), the holder of the authorization must comply with Social Security obligations in accordance with general regulations, enrolling in the General Social Security System if employed by another party or in the RETA (Self-Employed Workers’ Social Security System) if self-employed. An exception would arise from the application of an international Social Security instrument (for example, a bilateral agreement) that allows coverage from the country of origin to be maintained through the corresponding certificate of coverage, under the terms and for the cases provided for in that instrument, since not all agreements expressly provide for remote work from Spain.
IV. STRATEGIC CONCLUSION
As explained above, there is no single “correct” legal framework in the abstract: the choice must be based on a prior analysis of the specific circumstances of the mobility project. In practice, this analysis can be structured around three key factors:
- Length of stay. If the project is temporary and time-limited, an intra-company transfer is the natural choice, given its inherent legal limitations. If, on the other hand, the intention is for the employee to remain in Spain permanently, local employment—with no time limit—or international telecommuting—with the possibility of renewal until permanent residency is obtained—will be the appropriate options.
- Existence of a Spanish entity. Local hiring, by definition, requires a Spanish entity that is operational and capable of acting as an employer, which may entail a prior process of incorporating a company or opening a branch. Intra-company transfers also require a host entity within the group in Spain, although the employee does not need to sever ties with the home company. International telecommuting is, in fact, the only arrangement designed for those who provide services in Spain without any Spanish entity affiliated with the foreign company.
- Level of worker integration into the Spanish labor market. The greater the intended integration—both in terms of contractual stability and participation in the Spanish Social Security system—the more the solution leans toward local hiring. The lesser the integration—when the worker must remain legally and financially tied to the foreign company— an intra-company transfer or international telecommuting are more appropriate, without prejudice to Social Security obligations which, in the absence of an applicable bilateral agreement, may ultimately equate the worker’s situation to that of a worker fully integrated in Spain.
Ultimately, the decisive factor is to align the duration, functions, corporate structure, and integration model withan approach that allows for a legally sound and operationally viable implementation, avoiding “convenience” solutions that distort the employee’s legal status in Spain.
If you need help or advice on hiring international workers, at Gentile Law we have a team of experts in this field ready to assist you.
This publication is for informational purposes only and should not be construed as legal advice.
Contact us:
Santiago Randazzo Clavijo
Global Mobility Legal Advisor at Gentile Law
santiagorandazzo@gentile.law
+34 684 46 30 82
Ana Cerezo Guerrero
Global Mobility Paralegal at Gentile Law
+34 684 46 37 36
Lais Verissimo Galvan
Global Mobility Paralegal at Gentile Law
laisverissimo@gentile.law
+34 684 463 736